Peering Analysis: GenieATM 6000 July 2013

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1 Application Note Peering Analysis: July Application background As the internet activity is expected to expand continuously, ISPs across the globe are looking for ways to optimize their operations economically. Each ISP needs to find its own way to function in the Internet Peering Ecosystem. Having a suitable peering policy with peering business model is important for an ISP to maximize business opportunities or to minimize operation costs. A successful peering relationship should have an improved network performance while lowering operation costs or creating revenue for ISPs. GenieATM generates various peering analysis reports to assist ISPs with evaluating the suitable peering candidates and subsequently optimizing the peering relationship through traffic engineering and network planning. With BGP routing information, GenieATM can target a specific AS to carry out the relevant traffic and cost analysis as required and provide quantitative results for fair evaluation. 2. Internet Peering Ecosystem Internet Peering describes a business relationship among ISPs in which companies reciprocally provide internet access to each other s customers. Due to the difference in business and network scales, ISPs have developed various business relationships as to how they interconnect their networks and hence the Internet Peering Ecosystem. Each Internet (geopolitical) Region typically includes Tier 1 ISPs, Tier 2 ISPs, Content Provider and Enterprises, and Large Scale Network Savvy Content Providers. 2.1 Tier 1 ISPs Peering Full Mesh Peering A Tier 1 ISP has access to all of the routing tables in the regional internet solely through peering relationships. In an interconnect region, Tier 1 ISPs usually have a full mesh peering relationship with other Tier 1 ISPs and are therefore generally not interested in peering with the rest of the players ( Restrictive Peering Policy ) who can potentially be paying customers to Tier 1 ISPs. This no-peering relationship largely differentiates Tier 1 ISPs from other service providers. Genie Networks Ltd. 1

2 2.2 Tier 2 ISPs Peering Open Peering Policy Tier 2 ISPs are the ones who purchase and resell transit within an Internet region. As Tier 2 ISPs resell transit for business, they would actively look for opportunities to increase the number of peering they have to reduce their own transit costs. 2.3 Content Provider & Enterprise Peering Purchaser As content provider and enterprise players main focus is to provide and create content to customers and users, they usually do not operate networks or sell transit and hence always buy transit from ISPs No Peering Policy. 2.4 Large Scale Network Savvy Content Providers Large Scale Network Savvy Content Providers purchase transit but have also adopted peering as a strategy to lower their traffic expenses owing to their large traffic volume. This not only reduces transit costs but also gives large content providers greater control over routing to improve traffic performance hence improving end-user experience. Content Delivery Network Players have an Open Peering Policy similar to Tier 2 ISPs and peer with various ISPs aiming to deliver services from a place closer to the eyeballs by storing cached web objects at the edge of network. 2.5 Free Peering vs. Paid Peering For Free Peering relationship to be established, the traffic volume exchanged needs to be roughly balanced for both parties to make sense financially and the not-to-exceed-ration is around 2:1. In contrast, Paid Peering is a business model developed between Large Scale Network Savvy Content Providers and ISPs in which physical peering is established but is priced the same way as transits. 2.6 Peering Policy Lifecycle Within each Internet Peering Ecosystem, service providers usually go through a 5-stage peering policy lifecycle in which they have adapted different peering policies at different stages to suit their business development. At the initial stage, service providers begin as small Tier 2 ISPs and focus on reducing their IP transit cost by having as many free peering partners as they could regardless of network size; this is generally referred as an Open peering policy. As the size of peering network grows, Tier 2 ISPs would begin to concern about network performance and having control over their routings as well as making effort in meeting requirements of other selective networks. Eventually, they become selective about the networks to peer and would limit their peering activities with the more important networks by setting peering criteria. Next, large Tier 2 ISPs would have already established a large peering network except with the restrictive networks who are not interested in having new peers. At this stage, large Tier 2 ISPs would leverage external business relationships in order to secure peering with restrictive peers. Lastly, the ISPs have entered the Genie Networks Ltd. 2

3 category as restrictive Tier 1 ISPs and have established an enormous network and peer with only other large ISPs. 3. Peering Analysis 3.1 Peering Evaluation - Selective Peering Selective ISPs may receive hundreds of peering requests each year and thus require an easy solution to analyse the traffic to / from the requesting network. GenieATM supports Selective ISPs by generating the required reports and creating a set of filters to examine the traffic exchanged with the specific ASN. Selective ISPs can make decisions about the peering requests based on the statistics from the reports. Figure 3.1: Filter configuration for a Peer ASN Top-N analysis Figure 3.2: Rule-based report created for a specific AS Figure 3.1 shows how a filter is created for a specific AS to obtain the respective traffic information using GenieATM. A report is then generated (figure 3.2) to display all the traffic information coming From / Thru and the amount of traffic going To / Thru that specific AS. Such information is particularly useful when evaluating a potential peering candidate. Provided that the amount of Genie Networks Ltd. 3

4 traffic exchanged is sufficient, traffic distribution of From and To the AS should be approximately balanced and not exceeding 2:1 for the AS to be a suitable peering partner. 3.2 Peering Evaluation - Open Policy For those ISPs wish to peer with as many ISPs as possible, it is important for them to carry out some qualitative and quantitative analyses to ensure the peering relationship will be effective both financially and technically. GenieATM provides a proficient tool for ISPs to identify and evaluate a suitable new peering candidate. Figure 3.3: Top-N traffic report of peer for To and Thru traffic analysis Firstly, use the Peering Analysis Top-N reports and identify the Top ASN with the most traffic volume. Then, find an ASN and compare the In / Out traffic ratio to see if the exchanged traffic volume is approximately balanced for both parties. An ISP would consider peering with another only when the exchanged traffic volume is similar both ways. Lastly, compare the To / Through traffic distribution to check how much of the traffic is originated from the potential peer. If the majority of the traffic is originated from that AS ( To traffic), or evenly comes from several other ASs ( Thru traffic) which can be found using filter configuration to generate another Top-N report, then this AS would be the suitable candidate to peer. Conversely, if most of the traffic is Thru traffic coming from another AS then this other AS may be considered as a more suitable candidate to peer with. The same process can be reapplied again to this other AS to generate Top-N reports for further examining the traffic distribution. This both simplifies and quantifies the traffic evaluating process. GenieATM provides abundant analyses allowing ISPs to choose the right peering partners efficiently which is imperative for ISPs with open peering policy. 3.3 Peering Evaluation Restrictive Policy For ISPs with restrictive peering policy (mostly Tier 1 ISPs), the main focus of peering analysis is to enhance the network performance through network planning and traffic engineering, i.e. peering optimization. Genie Networks Ltd. 4

5 Various BGP policies can be applied to build the preferred AS path / BGP route to decide how traffics arrive and leave an AS in order to utilize ISP s network resources. GenieATM provides reports with detailed BGP attributes information which can be of useful when configuring and applying BGP policies. BGP policies can be applied to set MED (Multi-Exit Discriminator) or AS Padding to load balance inbound traffic from an AS. For the outbound traffic, BGP policies are used to favour one peer interface over another for routes from specific ASNs and can be achieved by setting Local Preference given that both interfaces have access to the same ASN. GenieATM monitors the traffic load of Interfaces of Neighbour / Sub-networks and generates various reports with different filter configurations (e.g. Prefix, Origin ASN, Peer ASN, AS Path, etc.) to breakdown BGP attribute traffic at an interface. This can be examined by creating a Filter to show the Origin ASN traffic distribution (figure 3.4) as well as creating a filter to show the Peer ASN traffic distribution of the specific ASN in order to find a specific peer to offload traffic to. GenieATM gives accurate traffic volume in the Top-N reports which can be used as reference to determine precisely how much traffic to be offloaded from the congested routes and the effect on the new route. The distribution of traffics can be evenly allocated avoiding over-offloading traffic from one to another. Reports can also be generated to show who the top talkers / listeners are that is reached via a specific peer and based on traffic analysis, may potentially peer with that AS directly. GenieATM assists ISPs with offloading traffics from expensive or unstable peers through traffic engineering to ensure network operations and optimize network performance. Figure 3.4: Rule-based report of a specific ISP Top-N Origin ASN analysis 4. Cost Analysis Direct peering with another AS would require some upfront fixed cost and equipment investments. Once the potential peering candidate is identified, further evaluation is therefore required to ensure the cost and investment needed to establish a new peer is justified on the long run. GenieATM provides the essential traffic information for carrying out the peering cost analysis. By using the Filters and rule-based reporting on GenieATM, a specific ASN of an ISP can be targeted to generate a Top-N report with traffic statistics. The potential savings with the new peering can be Genie Networks Ltd. 5

6 calculated using peering fixed costs and the generated traffic information. A simple equation of potential monthly cost saving could be calculated by the example equation below. Figure 4.1: New peer cost analysis and evaluation The Monthly cost saved can be calculated simply by subtracting total peering fixed costs (transport cost to Internet Exchange, peering port costs, and exchange centre rentals) from the current transit costs (transit rate x potential saved traffic volume). The resulted Monthly cost saved needs to be equal or greater than zero for the peering relationship to benefit financially. GenieATM provides ISPs a comprehensive solution which quantifies the cost analysis for peering and largely simplifies the decision process. 5. Peer Monitoring The stability and reliability of a peer largely affects the quality and security of a network. An unstable peer could consume more network resource than originally planned. GenieATM monitors the peering relationships for ISPs to ensure the performance of existing peers. GenieATM offers breakdown reports on peer partners and monitors the BGP stability via the change in number of BGP messages exchanged and prefixes announced. Alerts are generated when an unusual, huge churn of number message updates occurs (figure 5.1) which usually signifies an unstable peer. GenieATM also provides traffic visibility which can be used to monitor the effect of traffic engineering after offloading traffic from a heavy loaded route. Genie Networks Ltd. 6

7 Figure 5.1: BGP Message monitoring and real-time alerts 6. Conclusion GenieATM provides ISPs with abundant traffic reports and peering analyses not only to identify the optimal peering partners but also to evaluate the technical and financial benefit of the new peer. GenieATM offers filter configuration and Top-N traffic reports which can be used to carry out various peering analyses to suit ISPs with different peering policies. New peering candidate can be found through the Top-N traffic report and the To / Thru traffic distribution. Top-N reports also provide the required information for cost analysis for new peer investment justification. The traffic distribution report provides BGP attributes information as reference for traffic engineering and through applying BGP policies to utilise network resources and avoid route congestion. In addition to traffic analysis, GenieATM monitors the stability and reliability of the existing peers to ensure the performance of route and network. GenieATM offers ISPs with a complete solution for peering analysis to suit various business modes and gives ISPs an enhanced network management and network optimisation. About Genie Networks Genie Networks is a leading provider of IP flow-based network traffic analysis and security solutions. Our GenieATM offers network-wide, cost-effective traffic visibility and threat detection, which optimizes operation and enhances revenue for fixed and mobile broadband operators. GenieATM s Network Behaviour Analysis-based (NBA-based) DDoS prevention capability enhances operators network infrastructure security in a network-wide scope. GenieATM product series encompasses, GenieATM Flow Load Balancer, and GenieATM MSP server, which are all developed specifically to serve tier-1 ISPs. Through on-going technology innovations, Genie Networks solutions have been market-proven by a number of tier-1 telecoms and blue-chip enterprises worldwide. To date over 1,000 GenieATM network appliances have been deployed serving over 450 customers worldwide. For more information, please visit Genie Networks Ltd. 7